According to Planning Commission, the infrastructure spending in the telecom sector is likely to decline by over 26 per cent during the 12^th five year plan (FYP) in comparison to 11^th FYP.

The Planning Commission has attributed the decline in investments in the telecom sector to cutback in infrastructure-related investments by private telecom companies and the lack of fresh investments by loss making state–run operators - Bharat Sanchar Nigam Limited and Mahanagar Nigam Limited. Further, the telecom infrastructure-related investments which stood at Rs 329.12 billion in 2012-13 was barely 31.3 per cent of the estimated investments of Rs 1051.92 billion for the period under consideration.

The Planning Commission expects public sector investment in telecom infrastructure to increase at a compounded annual growth rate of about 2 per cent during the 12^th FYP. Going forward, public sector is forecast to make investments worth Rs 212.16 billion in infrastructure segment whereas the investments by the private sector will make up for the majority of the 68 per cent of the investments to be channeled into  telecom infrastructure segment.